Posted on 08/31/2018 9:34:21 AM PDT by re_tail20
President Trump is expected to sign an executive order on Friday that could affect how you save for retirement.
The White House said the measure – which directs the Treasury and Labor Department to consider issuing regulations or guidelines – will look at updating the rules on required minimum distributions for retirement plans, in an effort to allow retirees to stash away more money in their accounts for a longer period of time.
Under current law, retirees are required to begin withdrawing funds from their retirement accounts when they turn 70.5.
Trump is also asking the administration to look into ways to make work-based retirement programs more affordable for small businesses, in order to increase the number of those businesses that offer options.
One potential measure, for example, would be to allow small businesses to band together to offer joint plans.
According to the administration, only 53 percent of businesses with fewer than 100 employees offer workplace retirement plans, compared with nearly 90 percent of businesses with more than 100 workers that do so.
In addition to reducing costs as a pathway for more small businesses to offer plans, the order directs the agencies to look at ways to reduce bureaucratic barriers.
The president is expected to sign the order in Charlotte, North Carolina, Friday afternoon.
Retirement has been a focal point for Trump this week: On Thursday, the president took to Twitter to comment on the stock market, and how continued over performance could lead to a bump in retirement...
(Excerpt) Read more at foxbusiness.com ...
Several Democrats at the State level in several states have proposed, and even enacted, state government retirement savings plans for small businesses like this.
This executive order blunts that by making it possible for small businesses to band together for retirement savings plans, instead of not being able to should one all on their own, as medium and large businesses are able to do on their own.
Sounds like more common sense to me. Trump certainly is an “outside the box” thinker and doer. Love it.
Trump the magnificent.
He’s a Very Stable Genius.
This is all well and good.
But what’s needed is for bank rates to normalize so people can earn a decent return while maintaining liquidity.
IRA/401K is long term, tax advantaged money. A savings account is useful to accumulate money for emergencies and/or a large purchase in the future.
Of course normalizing interest rates would tend to limit the upside of the stock market and increase the cost of the Feds borrowing money.
Simple, make withdraws from qualified accounts TAX FREE.
Any moves towards privatization is good.
This is an option that hadn’t occurred to me, and I like it.
I have long believed that one of the ways to improve the retirement picture for americans has to do with how corporations are allowed to deduct the cost of employee retirement plan contributions.
Corporations should be allowed to deduct:
- cost of administering a retirement plan
- cost of matching contributions.
and
- an additional percentage of the matching contribution to encourage corporations to offer retirement plans. Further, to provide better matches.
Something like, if the corporation provides a 50% match, an additional 5% may be deducted. If they offer a 100% match, then an additional 10% may be deducted. Percentages would need to be looked at to determine the correct percentages.
Just speculating out loud.
tax deductible and tax free, that would incentivize productive people.
That would be a big help.
Emergencies arise, and it is your money after all.
We all know we shouldn’t dip in, but life has a funny way of tossing you curve balls.
ROTH withdrawls are tax free if:
- account has been active 5 years
and
- the account owner is 59 1/2 years old
ROTH withdrawls are tax free if:
- account has been active 5 years
and
- the account owner is 59 1/2 years old
Finances have always been beyond my understanding.
What I do understand is, my grandparents were able to retire comfortably due to the insane interest rates during the 70s/80s using a couple different vehicles.
I honestly don’t know how people in my generation will retire without both spouses in high paying jobs for the next few decades. I don’t have that, and neither do the majority of other couples I know of.
So with this proposal, I won’t be required to withdraw from my IRA at age 70.5????
This is why we elected a billionaire businessman who knows what the hades it takes to get good economic policies in place. Trump loves God and America too. Touché.
Yes, but with Roth you were taxed on the money before it went in.
The decision on whether to open a regular or a Roth IRA depends on whether you believe you’ll be in a higher or lower tax bracket when you retire.
Uncle Sam intends to get his cut, one way or another.
ML/NJ
“Simple, make withdraws from qualified accounts TAX FREE.”
That would help me and I’d gladly take the money, but I can’t see it happening.
For example, I would happily contribute $6000 when I was 64, reduce my taxable income by the $6000 (making it worth, say, $8000), and then withdraw that $6000 tax free as soon as I’m 65. Great for me, not so popular with voters who don’t have the money to move around.
Yep. Politicians are going to be in for a major schlonging when interest on the debt consumes most of the federal budget.
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